Money received from relative by way of unsecured loan

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Rohit (Querist)
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28 June 2014 whether there is any restriction under new companies act 2013 to accept money by way of loan (whether secured or unsecured) from relative under private company and also public company...

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B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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28 June 2014 Yes u/s 73

Any company can accept deposits or loans only from directors if they submit a declaration that the funds are not out of borrowed funds.

For accepting deposits from persons other than directors they have to comply with conditions mentioned in S. 73 and rules pertaining to Chapter V

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